Fortress Investment Group Launches New 1031 Real Estate Exchange Investment Platform

Fortress Real Estate Exchange offers a tax‑advantaged, institutional‑quality solution for 1031 exchange investors

NEW YORK--(BUSINESS WIRE)--Fortress Investment Group today announced the launch of Fortress Real Estate Exchange, a new 1031 exchange platform designed to provide advisors and their clients with access to institutional‑quality real estate investments through Delaware Statutory Trusts (DSTs).

Fortress Real Estate Exchange is designed to leverage the full capabilities of Fortress Investment Group’s real estate platform, including the experience garnered from more than 20 years of real estate investments totaling over $29 billion. The platform will initially target investments in senior housing, student housing, and multifamily properties – sectors in which Fortress has deep experience and operating capabilities.

Fortress Real Estate Exchange seeks to help real estate owners address key investment planning objectives, including the deferral of capital gains taxes, diversification of investment strategies and/or real estate exposure, and the desire to transition away from the challenges of active real property management. The platform also aims to deliver both stable cash flows and the potential for appreciation of asset values. Offerings from Fortress Real Estate Exchange will be structured to provide investors with flexibility in exit, particularly by avoiding mandatory UPREIT structures.

Each offering from Fortress Real Estate Exchange will be supported by the broad experience of Fortress’s real estate investing platform:

• Global scale with a middle‑market view – an institutional approach to middle‑market opportunities that provides a competitive advantage in sourcing, structuring financing, and executing investments
• Data‑centric processes – tough‑minded investing grounded in data over sentiment, leveraging proprietary insights derived from decades of experience
• Differentiated asset‑management focus – a dedicated real estate asset‑management team integrated from diligence through realization, with a relentless focus on downside protection and value creation
• Robust and transparent reporting – institutional infrastructure and systems designed to deliver clear, reliable, and transparent reporting

“Fortress Real Estate Exchange represents an important extension of how Fortress serves investors,” said Tim Sloan, Global Head of Real Estate at Fortress. “We built this platform to give advisors and the investors they serve a tax-advantaged, real estate focused investment strategy, backed by the investing experience, asset management know-how, and operational excellence they expect from Fortress.”

“The opportunity set within the real estate sectors that Fortress Real Estate Exchange is targeting is robust, with new supply for senior housing, student housing, and multifamily well below peak levels and demand remaining strong,” added Eli Edwards, Head of US Real Estate Equity at Fortress. “Given the valuation resets we’ve seen over the past five years and the supportive underlying fundamentals, we believe this is a compelling entry point for new real estate asset acquisitions – with the potential to deliver durable income streams to investors.”

“The Baby Boomer generation has approximately $90 trillion of net worth, and an estimated $2 to $4 trillion concentrated in investment properties and second homes,” said David Hammerman, Chief Operating Officer of Real Estate Equity at Fortress. “As these individuals seek more tax-efficient approaches to real estate investing and wealth transfer, we believe that Delaware Statutory Trust structures incentivized pursuant to Code Section 1031 offer an effective solution to transition from active ownership of smaller-scale assets to fractional, passive ownership of institutional-quality real estate on a tax-deferred basis.”

In connection with Fortress Real Estate Exchange, Fortress has selected Orchard Securities LLC to act as dealer-manager for future offerings, Baker McKenzie to provide legal advice, EA RESIG, LLC as fund administrator, and LODAS Markets, Inc. as transfer agent.

“We are elated that Fortress has entered the DST arena,” said Taylor Garrett, President of Orchard. He went on to say, “we have very much enjoyed working with the team at Fortress and we are confident that they possess the access to opportunities, and the ability to evaluate them and package them, in such a way that we believe will benefit of their investors.”

For more information on Fortress Real Estate Exchange, including important risks and disclosures, visit www.fortress1031exchange.com.

About Fortress Investment Group
Fortress Investment Group LLC is a leading, highly diversified global investment manager. Founded in 1998, Fortress manages $54 billion of assets under management as of September 30, 2025, on behalf of approximately 2,000 institutional clients and private investors worldwide across a range of credit and real estate, private equity and permanent capital investment strategies. AUM refers to assets Fortress manages, including capital that Fortress has the right to call from investors, or that investors are otherwise required to contribute, pursuant to their capital commitments to various funds or managed accounts. For more information, visit www.fortress.com.